By Connor Hart
Shares of Zevia tumbled after the company's 2025 outlook missed Wall Street's expectations.
The stock was down 29%, at $2.33, in midday trading Wednesday. Despite having fallen 44% since the beginning of the year, shares are up 46% in the past 52 weeks.
The sugarless beverage company before the bell guided for sales of $36 million to $38 million in the first quarter, missing the $40.8 million that analysts surveyed by FactSet expected.
It additionally forecast an adjusted Ebitda--or earnings before interest, taxes, depreciation and amortization--loss of $5.6 million to $6 million, compared with analyst views for a loss of $3.9 million.
In 2025, the company expects revenue of $158 million to $163 million, below the $164.9 million that analysts modeled. It guided for an adjusted Ebitda loss of $8 million to $11 million, compared with analyst estimates for a loss of $8.7 million.
Chief Executive Amy Taylor said that the company plans to focus on building brand awareness, launching new products and increasing in-store visibility during 2025.
In the fourth quarter, Zevia narrowed its loss to $5.76 million from $7.26 million a year earlier.
The company's quarterly loss of 9 cents a share was in line with the expectations of analysts surveyed by FactSet.
Sales increased 4.4% to $39.5 million, also in line with analyst views. Higher volumes were partially offset by increased promotional activity, the company said.
The fourth quarter benefited from the company's holiday campaign, rollouts of new flavors and variety packs, and expanded distribution in Walmart, according to Taylor.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
February 26, 2025 12:08 ET (17:08 GMT)
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